drilling 2 projects atm for copper zinc nickle gol

ITT going a bit under the radar imo, there drilling 2 projects atm for copper, gold on olympic dam style targets in SA at lake Giles targeting 6 holes, & also drilling for zinc, nickle, lead at there Coulta project targeting 16 holes.

Keep watch just needs one good hit to get going.

DYOR

Quartely report gives a good run down of ITT read below:



ASX Code: ITT
Quarterly Report For
Period Ending 30 Sep 2006
Exploration Office
Ground Level
11A Croydon Road
KESWICK SA 5035
Tel: +61 8 8351 3388
Fax: +61 8 8375 3999
InterMet Resources Limited
[email protected]
[email protected]
ACN 112 291 960
www.intermetresources.com.au
Registered Office
Level 41 Australia Square
264-278 George Street
SYDNEY NSW 2000
Tel: +61 2 8221 0404
Fax: +61 2 8221 0407
The Board of Directors of InterMet Resources Limited (InterMet) is pleased to report
that significant exploration activity and corporate transactions during the September
quarter has improved InterMet’s capacity to make a potential discovery. Detailed
gravity and aeromagnetic surveys aimed at identifying potential base and precious
metal drill targets at the Lake Gilles and Coulta projects have been completed. These
results have enabled the planning of over 4,300 metre of drilling, which will be
implemented prior to the conclusion of 2006.
Highlights
The signing of strategic joint ventures during the quarter will see exploration
accelerate at the Watson and Cocata projects, greatly enhancing the prospects of
future discoveries.
Corporate
• Signed Part 9B agreement with Barngarla Native Title group for Lake Gilles
Project (EL 3466 and 3467).
Lake Gilles Project
• Detailed gravity survey completed on EL 3466 and three significant anomalies
defined (Salt Creek, Red Dam and Lake Edge prospects);
• A 2,300m (4 holes) diamond drilling program due to be commenced in early
December 2007;
• Calcrete sampling program aimed at defining gold targets completed.
Coulta Project
• A high resolution 100m line spacing aeromagnetic survey currently being flown
(due to be completed end first week October);
• A 16 hole (2,000m) RC/Mud drilling program due to start 13 November 2006.
Watson Project
• Results from first drilling program showed anomalous uranium (up to 602ppb) in
groundwater and 70ppm within drill hole cuttings;
• Second drilling program completed – awaiting results;
• Signed a joint venture for all minerals excluding uranium with Silver Swan Group.
- 2 -
InterMet Resources Limited
Southern Gawler Ranges Project
• Results from first calcrete program showed low-level gold anomalism associated
with NW trending demagnetised zones;
• Second calcrete program just completed – awaiting results.
Cocata Project
• Signed a joint venture for palaeochannel uranium and unconformity-related
uranium with Uranium Equities Ltd;
• Signed a joint venture for all minerals excluding palaeochannel and unconformityrelated
uranium with Silver Swan Group.
Project Review
InterMet has five projects, all located on the Gawler Craton (Figure 1).
Figure 1 Location of InterMet Resources Projects
- 3 -
InterMet Resources Limited
Lake Gilles Project
(EL 3466 1005 and 3467 InterMet 100%, Mega Uranium earning 80% in
unconformity-related uranium)
Olympic Dam Cu-Au-U, Broken Hill Style base metals,
Orogenic Gold and Unconformity-related uranium
InterMet has signed a Part 9B Native Title Agreement with the Barngarla Native Title
Claimant Group.
IOCG Exploration
The PIRSA funded 2 x 2 km gravity survey over the eastern Gawler Craton including
InterMet’s Lake Gilles Project was completed. InterMet completed a regional infill
gravity program on a 1 x 1 km grid. Three prominent gravity anomalies were defined
and further detailed gravity on a 500 x 500 m grid and lines of 250m spaced gravity
stations were completed over two of these anomalies to define drilling targets and
assist with modelling depth to top of gravity feature.
The gravity anomalies exhibit features similar to other IOCG deposits/prospects on
the Gawler Craton including Olympic Dam, Prominent Hill and Carrapateena
including:
• Density of ~3.3 gm/cc which is in the range for IOCG targets
• High order gravity anomalies between 1.0 - 4.8 mgal
• The Lakes Edge gravity anomaly is overlain by a slightly offset magnetic anomaly;
a scenario which is similar to Prominent Hill
• Salt Creek and Red Dam anomalies are located along a major NE trending
structure which is a similar scenario to Carrapateena.
December 2006 Drilling Programme
Figure 2 Gravity anomalies on EL 3466 defined by new gravity data.
- 4 -
InterMet Resources Limited
Salt Creek
The Salt Creek prospect (Figure 2) is located along the western margin of
outcropping Burkitt Granite in close proximity to the Companion Prospect delineated
by previous calcrete sampling. Regional calcrete sampling over this area returned
multi-element spot highs along a major quartz veined fault structure and a rock chip
sample from a well located within 200m of Burkitt Hill recorded 280 ppb Au. The well
is cut into sericite altered quartz veined Burkitt Granite.
The Salt Creek prospect is also located at the junction of two prominent structures
(Figure 3). The main NNE trending structure is a major regional structure and crops
out as a 30 - 40m wide quartz vein, which contains visible sulphides. Previous
surface sampling within the vicinity of this quartz vein recorded elevated asenic, gold
and copper. A prominent E-W trending structure may also be an important feature
and intersects the NNE structure in the vicinity of the Salt Creek prospect.
InterMet plans to drill one diamond drill hole to 600m (SC-DD1) to test this gravity
feature. The hole will be drilled 60° towards 315° to test this feature. The Salt Creek
anomaly is a 2.8 mgal feature with a modelled depth to the top of the gravity feature
of 350m (Table 1). This hole is designed to penetrate both structures and intersect
the gravity target.
Prospect Drillhole
Priority
Planned
Drillhole
Number
Drillhole
Priority
Easting Northing Gravity
Anomaly
milligals
Interpreted
Depth to Top
of Gravity
Source
Interprete
d Density
of Surface
Salt Creek A SC-DD1 A 688800 6376500 2.8 350 3.3 gm/cc
Red Dam A RD-DD1 A 683100 6366000 1 220 3.3 gm/cc
Red Dam B RD-DD3 B 685375 6366500 3.2 360 3.3 gm/cc
Red Dam A RD-DD2 A 685000 6365500 3.5 360 3.3 gm/cc
Red Dam C C 685000 6363500 2.5 340 3.3 gm/cc
Lake Edge B B 678700 6383500 2.8 290 3.2 gm/cc
Lake Edge B B 679200 6381000 4.8 430 3.3 gm/cc
Table 1 Details of gravity Anomalies on InterMet Resources EL 3466
Red Dam
The Red Dam gravity anomaly is located approx 12km south of the Salt Creek
prospect (Figure 2) and comprises a large gravity complex with four discrete
anomalies of 3.3 gm/cc (Figure 3). Several other 3.2 gm/cc anomalies are located
within this area with plans for further drilling dependant on receipt of initial results.
The Red Dam prospect is associated with a prominent magnetic unit and is also
located along the same NE trending structure as the salt Creek prospect (Figure 3).
- 5 -
InterMet Resources Limited
Three holes will be drilled:
1. RD-DD1 will be drilled 60° towards 270° to test a 1 m/gal discrete 3.3 mg/cc
anomaly (Figure 3) to a depth of 500m. The modelled top surface of the anomaly
is 220m.
2. RD-DD2 will be drilled 60° towards 270° to test a 3.5 m/gal discrete 3.3 mg/cc
anomaly (Figure 3) to a depth of 600m. The modelled top surface of the anomaly
is 360m.
3. RD-DD3 will be drilled 60° towards 270° to test a 3.2 m/gal discrete 3.3 mg/cc
anomaly (Figure 3) to a depth of 600m. The modelled top surface of the anomaly
is 360m.
Lake Edge
The Lake Edge prospect is located along the eastern margin of Lake Gilles (Figure 3)
and represents the largest of the three gravity anomalies with a 4.8 m/gal target.
However, this target is the deepest and will be drill tested in a later drilling program
after further geophysics to better define the target.
Figure 3 Three gravity prospects on TMI showing prominent
regional NNE trending and E-W trending structures
- 6 -
InterMet Resources Limited
Gold Exploration
During the September quarter InterMet geologists undertook reconnaissance
geological mapping and rockchip sampling to define drilling targets for gold
mineralisation. Previous calcrete sampling had defined three gold prospects (Rinnai,
Beefeater and Weber). The field mapping outlined several other areas and a 300
sample, detailed calcrete program was completed. Samples have been submitted for
analysis and results are expected by mid to late October.
Several zones of quartz veining were sampled (Plate 1) with quartz veining present in
a range of basement lithologies (Hutchinson Group metasediments and Burkitt
Granite) together with the basal part of the Corunna Conglomerate. This suggests
that the quartz veining is Mesoproterozoic in age and related to the Gawler Range
Volcanic/Hiltaba Suite tectonothermal event (~1590 million years ago). This event
was very significant to the Gawler Craton and produced IOCG deposits at Olympic
Dam and Prominent Hill as well as gold deposits/prospects within the central Gawler
Craton gold province including Tunkillia, Nuckulla Hill and Barns.
Plate 1 Zone of intense quartz veining within basal unit of Corunna Conglomerate
Uranium Exploration
Hindmarsh Resources have commenced exploration for unconformity-related
uranium mineralisation hosted at the base of the Corunna Conglomerate. Two lines
of IP data have been completed and further lines are planned to provide drill targets.
The base of the Corunna Conglomerate is the target and the IP surveys are aimed at
targeting potential carbonaceous (reduced) layers within the Palaeoproterozoic
Hutchinson Group metasediments.
- 7 -
InterMet Resources Limited
Coulta Project
(EL 3314, ELA 84/06 & ELA 230/06 – 100%)
Komatiite hosted nickel, Volcanic Hosted Massive Sulphide,
Archaean orogenic gold and Rollfront uranium
Nickel, Gold and Base Metal Exploration
The aeromagnetic survey is due to be completed by 10 October. Technical problems
and several days of bad weather delayed the survey. A 16 hole (2,000m) drilling
program is due to commence on 13 November. Results from drilling by Lynch Mining
north of EL 3314 reported anomalous zinc, lead and silver within Archaean
greenstone units.
Uranium Exploration
The drilling program outlined above will include up to 5 holes which will be drilled
within the Cummins Palaeochannel. Samples from these holes will be submitted for
uranium analysis.
InterMet is actively seeking a joint venture partner to undertake uranium exploration
within the Cummins and Yaninee Palaeochannels (Figure 4).
Figure 4 Location of Cummins and Wanilla Palaeochannels
- 8 -
InterMet Resources Limited
Cocata Project
(EL 3462 and 3463 – InterMet 100%, Uranium Equities Ltd earning 80% in
palaeochannel hosted and unconformity-related uranium; Silver Swan Group
earning 80% in all minerals with the exception of palaeochannel hosted and
unconformity-related uranium )
Rollfront Uranium and Orogenic Lode Gold
Uranium Exploration
InterMet holds a significant position within the Yaninee Palaeochannel. On 14
September, InterMet announced it had signed a joint venture with Uranium Equities
Ltd (ASX:UEQ) for palaeochannel hosted and unconformity-related uranium
mineralisation on EL 3462 and EL 3463. Under the joint venture, UEQ can earn up
to an 80% interest by expending $2 million within 5 years on exploration within the
tenements.
UEQ offers significant exploration and project development experience, with both
Mark Chalmers (Managing Director) and David Brunt (Executive Director) having
extensive experience in the uranium industry, and posses one of the best technical
teams in the country with a proven track record of finding and developing
palaeochannel hosted uranium deposits.
Gold and IOCG Exploration
On 22 September InterMet announced it had signed a joint venture with Silver Swan
Group Ltd for all minerals except palaeochannel and unconformity-related uranium
mineralisation. Under the joint venture Silver Swan can earn up to an 80% interest
by spending $500,000 on the Cocata tenements within 4 years. The joint venture is
subject to ministerial consent being granted and the Australian Stock Exchange
Limited granting Silver Swan approval for admission to its official list.
WATSON Project
(EL 3313 and 3323 – 100%, Silver Swan Group earning
80% in all minerals except uranium)
Rollfront Uranium, Nickel and Gold Targets
InterMet applied for an additional tenement (ELA 379/06) located to the west of the
current tenements to increase its strategic position within this prospective area for
palaeochannel hosted uranium mineralisation (Figure 5).
Uranium Exploration
A second drilling program comprising 5 holes (EWB024-028) has been completed on
EL 3323. 5 holes totalling 372m were drilled with drill hole depths ranging from 39 -
98m. Drillholes intersected a sequence of oxidised and reduced sands with minor
carbonaceous sediments. Drillhole and water samples have been submitted for
uranium analysis. Figure 6 shows location of drill holes EWB001 - EWB020 on the
HoisTEM data.
- 9 -
InterMet Resources Limited
Figure 5 Location of InterMet Resources Watson Project
Figure 6 HoisTEM data for EL 3323 with drill holes from first drilling program
Nickel and Gold Exploration
As with the Cocata Project, Silver Swan Group Ltd undertook a joint venture with
InterMet on the 22 September for all minerals except uranium. Under the joint
venture Silver Swan can earn up to an 80% interest by spending $500,000 on the
Watson tenements within 4 years. The joint venture is subject to ministerial consent
being granted and the Australian Stock Exchange Limited granting Silver Swan
approval for admission to its official list.
- 10 -
InterMet Resources Limited
Southern Gawler Ranges Project
(EL 3461, 3598 and 3612)
Olympic Dam Cu-Au-U and Orogenic/Epithermal Gold
Gold Exploration
A follow-up detailed calcrete survey has been completed over EL 3461 (Figure 7).
Samples have been submitted for analysis with results expected by late October.
Field mapping showed zones of sericite alteration and quartz veining along volcanic
flow fronts and within the NW trending demagnetised zone, suggesting abundant fluid
flow along these structures.
Figure 7 Location of second calcrete sampling program on EL 3461
IOCG Exploration
InterMet is planning a detailed gravity survey over all three areas. InterMet has
requested Aboriginal heritage clearance for Lake Acraman to enable a detailed
gravity survey.
The information in this report relates to Mineral Exploration Results is based on information
compiled by Mr Gary Ferris, who is a member of the Australian Institute of Mining and
Metallurgy. Mr Ferris is the Managing Director of InterMet Resources and has sufficient
experience to qualify as a competent Person as defined in the 2004 Edition of the
Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore
Reserves. Mr Gary Ferris consents to the inclusion in the report of the matters based on his
information in the form and context in which it appears.
- 11 -
InterMet Resources Limited
For more information contact:
Gary Ferris
Managing Director
Tel: +61 8 8351 3388
Leon Faulkner
Exploration Manager
Tel: +61 8 8351 3388
Ian Kirkham
Company Secretary
Tel: +61 2 8221 0404
Appendix 5B
Mining exploration entity quarterly report
+ See chapter 19 for defined terms.
30/9/2001 Appendix 5B Page 1
BRule 5.3
Appendix 5B
Mining exploration entity quarterly report
Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001.
Name of entity
INTERMET RESOURCES LIMITED
ABN Quarter ended (“current quarter”)
66 112 291 960 30 September 2006
Consolidated Statement of Cash Flows
Cash flows related to operating activities
Current quarter
$A’000
Year to date
(12.months)
$A’000
1.1 Receipts from product sales and related debtors
1.2 Payments for (a) exploration and evaluation (155) (155)
(b) development
(c) production
(d) administration (90) (90)
1.3 Dividends received
1.4 Interest and other items of a similar nature received 52 52
1.5 Interest and other costs of finance paid
1.6 Income taxes paid
1.7 Other (provide details if material)
Net Operating Cash Flows (193) (193)
Cash flows related to investing activities
1.8 Payment for purchases of: (a) prospects
(b) equity investments
(c) other fixed assets (5) (5)
1.9 Proceeds from sale of: (a) prospects
(b) equity investments
(c) other fixed assets
1.10 Loans to other entities
1.11 Loans repaid by other entities
1.12 Other (provide details if material)
Net investing cash flows (5) (5)
1.13 Total operating and investing cash flows (brought
forward)
(198) (198)
Appendix 5B
Mining exploration entity quarterly report
+ See chapter 19 for defined terms.
30/9/2001 Appendix 5B Page 2
1.13 Total operating and investing cash flows
(brought forward)
(198) (198)
Cash flows related to financing activities
1.14 Proceeds from issues of shares, options, etc. 2 2
1.15 Proceeds from sale of forfeited shares
1.16 Proceeds from borrowings
1.17 Repayment of borrowings 0 0
1.18 Dividends paid
1.19 Other (provide details if material) (8) (8)
Net financing cash flows (6) (6)
Net increase (decrease) in cash held (204) (204)
1.2 Cash at beginning of quarter/year to date 3,513 3,513
1.21 Exchange rate adjustments to item 1.20
1.22 Cash at end of quarter 3,309 3,309
Payments to directors of the entity and associates of the directors
Payments to related entities of the entity and associates of the related entities
Current quarter
$A'000
1.23
Aggregate amount of payments to the parties included in item 1.2
48
1.24
Aggregate amount of loans to the parties included in item 1.10
-
1.25
Explanation necessary for an understanding of the transactions
Non-Cash Financing and Investing Activities
2.1 Details of financing and investing transactions which have had a material effect on consolidated
assets and liabilities but did not involve cash flows
2.2 Details of outlays made by other entities to establish or increase their share in projects in which the
reporting entity has an interest
Appendix 5B
Mining exploration entity quarterly report
+ See chapter 19 for defined terms.
30/9/2001 Appendix 5B Page 3
Financing Facilities Available
Add notes as necessary for an understanding of the position.
Amount available
$A’000
Amount used
$A’000
3.1 Loan facilities
3.2 Credit standby arrangements
Estimated Cash Outflows for Next Quarter
$A’000
4.1 Exploration and evaluation
155
4.2 Development
Total
155
Reconciliation of Cash
Reconciliation of cash at the end of the quarter (as shown in
the consolidated statement of cash flows) to the related items
in the accounts is as follows.
Current quarter
$A’000
Previous quarter
$A’000
5.1 Cash on hand and at bank 3,309 3,513
5.2 Deposits at call
5.3 Bank overdraft
5.4 Other (provide details)
Total: cash at end of quarter (item 1.22) 3,309 3,513
Changes in Interests in Mining Tenements
Tenement
reference
Nature of
interest
(note (2))
Interest at
beginning of
quarter
Interest at end
of quarter
6.1 Interests in mining
tenements relinquished,
reduced or lapsed
6.2 Interests in mining
tenements acquired or
increased
Appendix 5B
Mining exploration entity quarterly report
+ See chapter 19 for defined terms.
30/9/2001 Appendix 5B Page 4
Issued and Quoted Securities at End of Current Quarter
Description includes rate of interest and any redemption or conversion rights together with prices and dates.
Total number Number quoted Issue price per
security (see
note 3) (cents)
Amount paid up
per security (see
note 3) (cents)
7.1 Preference +securities
(description)
7.2 Changes during quarter
(a) Increases through
issues
(b) Decreases through
returns of capital, buybacks,
redemptions
7.3 +Ordinary securities 40,500,500 21,650,500
7.4 Changes during quarter
(a) Increases through
issues
Listed Options Exercised 10,000 10,000 $0.20
b) Decreases through
returns of capital, buybacks
7.5 +Convertible debt
securities
Unlisted Unsecured
Convertible Notes
converting on or before
7.6 Changes during quarter
(a) Increases through
issues
7.7 Options Exercise price Expiry date
Listed 9,990,000 9,990,000 $0.20 30/11/2007
Unlisted 21,000,000 n/a $0.20 23/05/2010
7.8 Issued during quarter
7.9 Exercised during quarter
Listed 10,000 10,000 $0.20 30/11/2007
7.10 Expired during quarter
7.11 Debentures
(totals only)
7.12 Unsecured notes
(totals only)
Appendix 5B
Mining exploration entity quarterly report
+ See chapter 19 for defined terms.
30/9/2001 Appendix 5B Page 5
Compliance statement
1 This statement has been prepared under accounting policies which comply with accounting
standards as defined in the Corporations Act or other standards acceptable to ASX (see note 4).
2 This statement does give a true and fair view of the matters disclosed.
Sign here: Date: 30/10/2006
Company Secretary
Print name: Ian Kirkham
Notes
1 The quarterly report provides a basis for informing the market how the entity’s activities have
been financed for the past quarter and the effect on its cash position. An entity wanting to
disclose additional information is encouraged to do so, in a note or notes attached to this report.
2 The “Nature of interest” (items 6.1 and 6.2) includes options in respect of interests in mining
tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in
a joint venture agreement and there are conditions precedent which will change its percentage
interest in a mining tenement, it should disclose the change of percentage interest and conditions
precedent in the list required for items 6.1 and 6.2.
3 Issued and quoted securities The issue price and amount paid up is not required in items 7.1
and 7.3 for fully paid securities.
4 The definitions in, and provisions of, AASB 1022: Accounting for Extractive Industries and
AASB 1026: Statement of Cash Flows apply to this report.
5 Accounting Standards ASX will accept, for example, the use of International Accounting
Standards for foreign entities. If the standards used do not address a topic, the Australian
standard on that topic (if any) must be complied with.